Ponzi scheme pair: Father and son accused of defrauding USD 27 million in the UAE
The suspects had lured 400 individuals into investing in a non-existent project which they alleged will generate â high returns’.
Click here to add Cassation Court as an alert
Disable alert for Cassation Court,
Click here to add Court of Appeals as an alert
Disable alert for Court of Appeals,
Click here to add Court of Cassation as an alert
Disable alert for Court of Cassation,
Click here to add Criminal Court as an alert
Disable alert for Criminal Court
A father and son have been convicted of defrauding Dh100 million (around 27 million USD) in fake investments using the name of their deceased business partner, the Cassation court ruled.
The defendants have been sentenced to one year in jail in addition to paying Dh40,000( (11,000 USD) for conducting financial business without a licence. The pair was initially sentenced to four years after being found guilty by the Criminal Court and were later declared innocent by the Court of Appeals. However, after reopening the case, the Court of Cassation reduced their prison sentences to one year.
The suspects had lured 400 individuals into investing in a non-existent project which they alleged will generate high return. They completed their act by placing false advertisements about their unlicensed company in different media outlets.
According to court records, the pair was instead using the cash they received from investors to purchase stocks through which they lost Dh14 million. It is learnt the deceased was also unaware of what both men were doing as he was not too involved in the company’s business details. Despite that, the suspects continued to falsely use his name 15 months after he died, and wrote 95 per cent of the company’s shares in his name.
Based on this information, the men were found guilty even after they were cleared of the charges against them.
- Nip, tuck: Dubai's grand plans for being a major player in medical tourism
- Zain, UNHCR, Facebook to bring free internet access to urban refugees in Jordan
- Yemen Central Bank headquarters to relocate from Sanaa to Aden
- IMF report details the crippling economic effects of conflict in MENA
- Start Up Lebanon entrepreneurs head to Silicon Valley Roadshow
- Parents ask Free Syrian Army to find son's killers
- So you're gay? Father thinks a Lebanese girl can fix that
- Father of Qatari charged with involvement in Sept. 11 claims son is innocent
- Messi can avoid jail by paying £20m fine for alleged tax evasion
- Indonesian police launch manhunt for Suharto's fugitive son